The UK’s Competition and Markets Authority (CMA) has launched an investigation into Google’s dominance in online search, where it accounts for 90% of UK web searches. The inquiry will assess whether Google’s position harms competition or limits user choice.
This is the CMA’s first investigation under new powers to regulate firms with “strategic market status” in digital markets. Potential changes could include requiring Google to share its data with competitors or giving publishers greater control over data used in its AI features.
Google has pledged to cooperate but warned against “overly prescriptive” regulations, emphasizing the importance of maintaining innovative services.
The investigation adds to the global scrutiny Google faces, including a U.S. case where the government seeks the sale of its Chrome browser to address its alleged monopoly in search and advertising.
“And for businesses, whether you are a rival search engine, an advertiser or a news organisation, we want to ensure there is a level playing field for all businesses, large and small, to succeed.” she added, especially given the potential for AI to “transform” the market.
‘A fair deal’
The CMA’s announcement of its Google search and advertising investigation follows the digital market competition regime coming into force in January.
It gives the CMA powers to investigate firms it believes may dominate or occupy a key strategic position in a certain sector.
An explainer on its website says a company must meet several conditions before it can be determined to have “strategic market status”.
These include having a UK turnover of more than £1bn or global turnover of £25bn, occupying a position of strategic significance or “entrenched market power” in relation to a certain digital activity.
The CMA says it will look at whether Google is using its position in search to prevent rivals from innovating or entering the market, or if it is “self-preferencing” its own services.
It will also look at whether Google is collecting large amounts of user data without proper, informed consent.
“It’s our job to ensure people get the full benefit of choice and innovation in search services and get a fair deal – for example in how their data is collected and stored,” said Ms Cardell.
It will have nine months to carry out its investigation and two options at its disposal if it finds Google to have strategic market status – imposing rules on how it behaves, or making interventions designed to boost competition.
Pinar Akman, professor of law at the University of Leeds, says it is “highly likely” the CMA will launch further, similar investigations under the Digital Markets, Competition and Consumer (DMCC) Act in coming months.
“There is a general trend of regulating digital markets with large players around the world and the DMCC Act represents the UK’s response to that growing trend,” she told BBC News.
Prof Akman added that the regime offers more flexibility than regulation such as the EU’s Digital Markets Act in tailoring any interventions or requirements to market specifics.
It comes after the Prime Minister Sir Keir Starmer lauded AI’s “vast potential” to transform public services.
In a speech on Monday, Sir Keir said recommendations from the AI Opportunities Action Plan – a set of proposals backed by several tech firms – would be implemented across a range of areas to help grow the economy and make AI “work for working people.”
